AG Mortgage (NYSE:MITT) Investment Trust, Inc. (NYSE:MITT) has entered into new Equity Distribution Agreements with four sales agents, signaling a potential sale of up to $75 million in common stock, according to a recent filing with the Securities and Exchange Commission. This move comes concurrently with the termination of previous agreements with Credit Suisse Securities (USA) LLC and JMP Securities LLC.
On Monday (NASDAQ:MNDY), AG Mortgage Investment Trust inked agreements with BTIG, LLC, JonesTrading Institutional Services LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co. These agreements allow the real estate investment trust, headquartered in New York, to offer shares of its common stock at market prices through the New York Stock Exchange.
The company, which operates within the real estate sector focusing on residential investments, aims to use the net proceeds from any sales for general corporate purposes. This includes the acquisition of target residential investments, adhering to the company's investment guidelines and maintaining its status as a REIT and its exemption from registration under the Investment Company Act.
The sale of shares, if executed, will be conducted as per the "at the market offering" terms, consistent with the normal trading practices of the sales agents and in agreement with AG Mortgage Investment Trust. The sales agents are entitled to a commission of up to 2% of the gross sales price of any shares sold through this arrangement.
This strategic move is facilitated under the company’s existing shelf registration statement and the prospectus supplement dated today. The offering will terminate upon the sale of all shares under the agreement or if the agreements are terminated by either the sales agents or the company with a day's notice. The termination of the previous equity distribution agreements with Credit Suisse and JMP Securities took effect today, ending relationships established back in May 2017.
This report is based on a press release statement and the information contained in the SEC filing. It does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, AG Mortgage Investment Trust (MITT) has reported its Q3 2024 financial results, featuring a 3.9% economic return on equity, net interest income of $15.8 million, and earnings per share (EPS) of $0.40. The company also revealed earnings available for distribution (EAD) at $0.17 per share. A noteworthy reduction in leverage to 1.5 turns was achieved, with the company maintaining liquidity of approximately $120 million.
MITT issued two securitizations amounting to $750 million, indicating a strategic focus on the home equity loan market, a sector representing a $2 trillion market opportunity. Despite a slight decline in the investment portfolio by 1.4% to $6.8 billion and a reduction of $543 million in Agency RMBS and $160 million in loans sold, the company's resilience against interest rate volatility remains strong.
Amid challenges in the housing market, including supply and affordability issues, and a $0.02 loss from Arc Home, MITT's executives maintain a cautious outlook on competition and market dynamics. However, they are optimistic about the potential of the home equity lending segment, which is expected to yield strong returns. These are among the recent developments for AG Mortgage Investment Trust.
InvestingPro Insights
AG Mortgage Investment Trust's (NYSE:MITT) recent move to establish new Equity Distribution Agreements aligns with several key financial indicators and trends highlighted by InvestingPro. According to InvestingPro Tips, MITT "pays a significant dividend to shareholders" and "has maintained dividend payments for 14 consecutive years." This consistent dividend policy may be attractive to investors considering the potential $75 million stock offering.
The company's financial health is further supported by InvestingPro data showing that "liquid assets exceed short term obligations," which could provide reassurance to potential investors in light of the new stock offering. Additionally, the fact that "analysts predict the company will be profitable this year" may bolster confidence in MITT's financial outlook.
It's worth noting that InvestingPro Tips also indicate that MITT's "price has fallen significantly over the last five years," which could make the new stock offering an opportunity for investors seeking value. For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for MITT, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.